New Jersey's sales tax rate is 6.625 percent on most purchases
New Jersey charges 6.625 percent sales tax on most goods and services you buy in the state. This is a single statewide rate — it does not vary by county or municipality the way it does in some other states. When you buy something at a store, the 6.625 percent is added to the price at checkout.
The rate has been 6.625 percent since 2006. Before that, New Jersey's sales tax was 6 percent. The increase happened once and has stayed the same for nearly two decades, so you will not see it change based on where in the state you shop or what time of year it is.
Key Takeaways
- New Jersey's sales tax is 6.625 percent statewide, with no local additions on top of that rate.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in New Jersey.
- Clothing under $110 per item is tax-free, but items over that price point are taxed at the full rate.
- Services like haircuts, repairs, and labor are generally not subject to sales tax unless they are bundled with taxable goods.
- Online purchases from out-of-state sellers may or may not have sales tax added depending on whether the seller has a physical presence in New Jersey.
What is and is not taxed in New Jersey
Not everything you buy in New Jersey is subject to the 6.625 percent rate. Groceries — food you cook at home — are exempt. This includes milk, bread, vegetables, meat, and canned goods. It does not include prepared foods, hot foods, or items from a deli counter, which are taxed.
Prescription medications are not taxed. Over-the-counter medications like pain relievers and cold medicine are taxed. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies are also exempt.
Clothing has a special rule in New Jersey. Items of clothing that cost less than $110 are tax-free. A shirt for $50 is not taxed. A coat for $150 is taxed on the full amount. If you buy multiple items, each item is evaluated separately — two $60 shirts are both tax-free, but a $60 shirt and a $120 jacket means you pay tax only on the jacket.
Services like haircuts, plumbing repairs, and car maintenance are generally not taxed. However, if a service includes a taxable product — such as a haircut plus a shampoo product you take home — the product portion may be taxed.
How sales tax works on online and out-of-state purchases
If you order something online from a company that has a warehouse, office, or other physical location in New Jersey, sales tax is usually added to your order. If you order from a company with no presence in New Jersey, the seller may not add New Jersey sales tax — but you may owe use tax instead, which is a tax on items you bring into the state or have delivered to you.
In practice, most large online retailers now collect sales tax for New Jersey orders regardless of where they are based, because federal law changed in 2018 to require it. Smaller sellers may not. The difference between sales tax and use tax is technical; what matters is that New Jersey expects tax to be paid on purchases either way.
If you buy something in another state and bring it home to New Jersey, you do not owe sales tax on it — you already paid tax in that state. You do not pay twice.
Who collects the sales tax and where it goes
The store or business you buy from collects the sales tax at the point of sale and sends it to the New Jersey Division of Taxation. The business does not keep the money — it is held in trust and forwarded to the state. Businesses file sales tax returns monthly, quarterly, or annually depending on how much they sell.
The revenue from sales tax goes into New Jersey's general fund and supports state services. Unlike some states, New Jersey does not dedicate sales tax to a specific program — it is part of the overall state budget.
Sales tax on specific items and services
Some purchases have their own rules. Gasoline is taxed at the pump as part of the price you see displayed. Alcohol — beer, wine, and liquor — is taxed at the full 6.625 percent rate. Cigarettes and vaping products are taxed at the sales tax rate plus an additional excise tax that is much higher.
Restaurant meals are taxed. If you eat at a table or take food to go, the 6.625 percent applies. Prepared foods from a grocery store deli or bakery are also taxed, even if you buy them to take home. Unprepared groceries — raw ingredients — are not.
Haircuts and salon services are not taxed. Gym memberships are not taxed. Repairs to clothing, shoes, appliances, and vehicles are not taxed, though parts you buy separately are. Dry cleaning is not taxed.
Understanding the difference between sales tax and other New Jersey taxes
Sales tax is one of several taxes you may encounter in New Jersey. The state also has an income tax, which is separate — it is taken from your paycheck or paid when you file your tax return. Sales tax and income tax are different systems and are not related to each other.
Some counties and municipalities in New Jersey also charge a property tax, which is a tax on real estate you own. This is also separate from sales tax. Sales tax applies only to purchases of goods and certain services, not to property ownership.
If you own a business in New Jersey, you may also deal with business taxes and payroll taxes, which are different from the sales tax you collect from customers.
How to calculate sales tax on your purchase
To find out what you will pay in sales tax, multiply the price of the item by 0.06625. For a $100 item, the sales tax is $6.63. For a $50 item, it is $3.31. Most stores round to the nearest cent.
You do not need to calculate this yourself — the register does it for you. But if you want to know the total cost before you check out, you can use this formula. Some stores display the tax separately on the receipt so you can see exactly how much went to the state.
If you are buying multiple items and some are taxed while others are not — for example, groceries and a magazine — the register will calculate tax only on the taxable items.
Frequently Asked Questions
Is clothing always tax-free in New Jersey?
No. Clothing items under $110 are tax-free, but items $110 or more are taxed at the full 6.625 percent. Each item is priced separately — a $100 shirt and a $120 pair of pants means you pay tax only on the pants. Accessories like belts, hats, and scarves follow the same rule.
Do I pay sales tax on groceries?
Not on unprepared groceries — milk, bread, vegetables, meat, and canned goods are all tax-free. Prepared foods, hot foods, and items from a deli counter are taxed. If you are unsure whether something counts as prepared, the register will tell you at checkout.
What about sales tax on online orders from out-of-state companies?
Most large online retailers now collect New Jersey sales tax on orders shipped to the state, even if the company is based elsewhere. Smaller sellers may not. If tax is not collected, you may owe use tax, though this is rarely enforced for individual purchases.
Are services like haircuts and repairs taxed?
Most services are not taxed in New Jersey. Haircuts, dry cleaning, car repairs, and appliance repairs do not have sales tax added. However, if you buy a product as part of the service — such as a haircut plus a product you take home — the product may be taxed.
Does New Jersey have local sales tax on top of the state rate?
No. New Jersey has only one sales tax rate: 6.625 percent statewide. Unlike some states, there are no county or municipal additions. The rate is the same whether you shop in Newark or Cape May.